Gold Daily Update – Monday 11 August 2009

Market Commentary
Gold opened on its highs at 953.00/954.00 and was quickly swept lower, triggering stops, tumbling to an intraday low of 942.00/943.00. It recovered marginally from its lows and traded lightly within a range. The metal became bid during the early afternoon, finding resistance near 950.00. It lost ground as the session unwound, finally settling at 944.50/945.50.

Technical Commentary
Gold is weak on the dailies, falling again today, but finding support just above its 50-day moving average at $941.67. The 50-day is reinforced by the fact that it corresponds to the 38.2% Fibonacci retracement of the April to June up move, off strong support at the multiple April lows at $865.50, the last of which now constitutes multi-month trend support. Should the 38.2%/50-day level give way, we next see strong support holding in at the 50% Fibonacci retracement of the previously mentioned up move, corresponding to the 100-day moving average at $927.50.